Virginia lawmakers are weighing the impact of federal budget cuts and policies on the commonwealth. The House Emergency Committee on the Impacts of Federal Workforce and Funding Reductions met in Wytheville on Monday to hear from representatives of sectors that could be most impacted.
A large section of the hearing was devoted to the potential impacts of cuts to Medicaid. As of May 1, CardinalCare estimates that 1,898,555 Virginians are on Medicaid.
Severe cuts could reduce access to care and services, and higher costs could be passed along through commercial insurance contract negotiations, a Carilion Clinic representative told the committee.
“Carilion Clinic was glad to participate in the House Emergency Committee’s meeting in Wytheville and share the challenges of caring for patients in the rural parts of our service region,” said a representative in a statement to 10 News.
“We’re closely monitoring the ongoing budget work in Congress and awaiting the final legislation, the Virginia Department of Medical Assistance Services’ interpretation, and the commonwealth’s possible response to help us determine what impact there will be on our hospitals and the care we provide to patients in need in our communities.”
While the latest proposal in Congress does not include some of the more aggressive cuts sought by some GOP lawmakers, it still could cut spending by hundreds of billions of dollars.
InnovAge, which operates the Program of All-Inclusive Care for the Elderly (PACE) in the Roanoke Valley, is watching any potential reports of cuts closely. It estimates that 95% of the seniors it serves are on Medicaid and/or Medicare.
“It would be a huge loss. We support several hundred older adults who are nursing home-level but still able to be as independent as possible in the community, so it would not only affect those participants; it would also affect also any family or friends in their care circle,” said Mary Beth Alford, outreach specialist for InnovAge PACE – Roanoke.
The lawmakers also heard from food banks and pantries. They are already seeing increased demand, which could grow with cuts to federal programs like HUD, SNAP, TEFAP, and Medicaid, according to Feeding Southwest Virginia. Roanoke Neighborhood Pantry is seeing a 36.42% increase in the number of households it serves.
Tariffs were also a big topic. The trade levies have left markets “in flux,” according to a Virginia Tech researcher. Tariffs also have the potential to increase costs for health care providers and businesses.
Gov. Glenn Youngkin already ordered $900 million in cuts to the state budget due to uncertainty about federal impacts to Virginia.
This was the third meeting of the committee as it works to formulate a report on how the commonwealth can best handle the impacts of policy changes in Washington.
“I thought we had a productive committee meeting yesterday in Wytheville, and it was great to be in Southwest Virginia,” said Del. Ellen Campbell, R-Rockbridge, in a statement to 10 News. “This commission was created to make sure Virginia was prepared for whatever happened at the federal level. It’s been enlightening to travel around the commonwealth and hear from experts. I remain optimistic and committed to making sure Virginia remains a great place to live, work, and raise a family.”
The committee is expected to finish its work by the end of the year and issue its report in time for the 2026 session of the General Assembly.